Market Sentiment Around Loss-Making Access Intelligence Plc (LON:ACC)

With the business potentially at an important milestone, we thought we'd take a closer look at Access Intelligence Plc's (LON:ACC) future prospects. Access Intelligence Plc, together with its subsidiaries, provides software as a service (SaaS) products to blue-chip enterprises, communications agencies, public sector bodies, and not-for-profit organizations in the United Kingdom, European Union, and internationally. The UK£63m market-cap company posted a loss in its most recent financial year of UK£2.2m and a latest trailing-twelve-month loss of UK£3.5m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Access Intelligence's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Access Intelligence

Expectations from some of the British Software analysts is that Access Intelligence is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of UK£3.8m in 2023. So, the company is predicted to breakeven approximately 3 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 55% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Access Intelligence's upcoming projects, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Access Intelligence, so if you are interested in understanding the company at a deeper level, take a look at Access Intelligence's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Valuation: What is Access Intelligence worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Access Intelligence is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Access Intelligence’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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